Portfolio Manager's Journal
As of January 17, 2017

Midas Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income. Recent outperforming Fund portfolio securities include those of Goldcorp, Inc., a senior gold miner, and South32 Limited, a large base metals producer. Fund shareholdings of Alamos Gold, Inc., an intermediate gold producer with four operating mines in North America, have lagged over the same period. The Fund is currently seeking to add to its portfolio companies in the natural resources and other sectors with promising exploration potential, expanding production profiles, increasing cash flow, strong balance sheets, and/or other special growth features. The Fund currently is invested with leverage in a global portfolio of primarily large and medium gold and diversified mining companies, precious metals royalty companies, and ETFs holding gold and silver bullion.

Midas Magic seeks capital appreciation. Overall, relative to the S&P 500, the Fundís portfolio currently is more weighted in cyclical companies, such as financial services and consumer products, and is underweight in economically sensitive and defensive industries. The Fund continues to focus on companies that appear to have strong operations showing superior returns on equity and assets while also retaining reasonable valuations. The Fund has a broad orientation towards seeking to invest in conservatively priced value stocks and selected, reasonably priced, growth issues. Portfolio holdings of Viacom, Inc. Class B, the owner of global media brands that create entertainment content, and Discovery Communications, Inc. Class A, a global media company that provides content across multiple distribution platforms, have recently contributed to the Fundís returns. The Fundís holding of Marcus & Millichap, Inc., a brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services, has detracted from recent Fund performance. Each of Mastercard Inc. Class A, Berkshire Hathaway, Inc. Class B, and Alphabet Inc. Class A currently comprise more than 10% of the Fundís net assets.

This release may contain certain “forward looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,”“will,” and similar expressions identify forward looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from a Fund’s historical experience and its current expectations or projections indicated in any forward looking statements. These risks include, but are not limited to, equity securities risk, corporate bonds risk, credit risk, interest rate risk, leverage and borrowing risk, additional risks of certain securities in which a Fund invests, management risk, and other risks discussed in each Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forwardlooking statements, which speak only as of the date they are made. Each Fund undertakes no obligation to update or revise any forward looking statements made herein. There is no assurance that each Fund’s investment objectives will be attained.

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There is no assurance that the investment objectives of the Midas Funds will be attained. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

You should carefully consider the investment objectives, risks, charges and expenses of the Midas Funds by reading the prospectus carefully before investing or sending money. To obtain a copy of the prospectus, please contact us at 1-800-400-MIDAS (6432) or download it at http://www.midasfunds.com/midas-funds-prospectus.pdf. Midas Securities Group, Inc., Distributor.

Midas Fund invests in securities of companies involved in the business of mining, processing, fabricating, distributing or otherwise dealing in natural resources and precious metals. Midas Fund is subject to risks including, but not limited to, those associated with market fluctuations, foreign investment, non-diversification, concentration, investments in gold, silver, platinum, and other precious metals, natural resource companies, depletion and exploration risk, and in-kind redemptions.

Investment products, including shares of the Funds, are not federally or FDIC insured, are not deposits or obligations of, or guaranteed by, any financial institution and involve investment risk, including possible loss of principal and fluctuation in value. Consult with your tax advisor or attorney regarding specific tax issues.

One of Midas’ guiding principles is that we will communicate with our shareholders and prospective investors as candidly as possible because we believe shareholders and prospective investors benefit from understanding our investment philosophy and approach. Our views and opinions regarding the prospects of our portfolio holdings, Funds, and the economy are “forward looking statements” which may or may not be accurate and may be materially different over future periods. We disclaim any obligation to update or alter any forward looking statements, whether as a result of new information, future events, or otherwise. Thus, you should not place undue reliance on forward looking statements, which also speak only as of the date of the Midas communication.

The Midas Funds are managed by Midas Management Corporation, a wholly owned subsidiary of Winmill & Co. Incorporated. Winmill & Co. is engaged through subsidiaries in stock market and gold investing through its investment management of mutual funds and closed end funds. “Midas”, “Midas Funds” (design), and “The Midas Touch” registered trademarks are the property of Performance Driven Properties, Inc.